With the July 1 deadline fast approaching for the enforcement of the electronic -invoicing (e-invoicing) policy regime, indications are that thousands of large businesses operating in the country risk sanctions for non-compliance, The Nation can authoritatively report.

It may be recalled that the Nigeria Revenue Service (NRS) as part of its digital transformation of the nation’s tax ecosystem announced the introduction of the e-invoicing with the compliance window for large taxpayers with annual turnover of N5 billion and above closing on June 30, after which enforcement would begin from July 1.

However, from available information not many of the affected businesses would be able to effectively comply with this directive thus risking penalties from the regulatory agency – NRS.

Echoing similar sentiments, the Country Director of DigiTax Nigeria, Mr Olumide Akinsola, who spoke at a news conference in Lagos, recently revealed that many businesses would come under the NSR hammer.

While acknowledging that there is growing adoption of the system, thousands of companies within the category remain outside the compliance framework.

“Over 1,000 had complied as of early 2026, according to NRS briefings shared with accredited service providers, but that leaves the majority exposed as the compliance window closes on June 30.

“The NRS tells us the results are encouraging, but there is a lot more work to be done. There is still a significant chunk of businesses in this cohort that are still outside,” Akinsola said.

DigiTax, a pan-African e-invoicing platform developed by Namiri Technology Ltd., serves as an integration layer between businesses’ invoicing systems and the regulatory infrastructure of national tax authorities.

The company is accredited by the Nigeria Revenue Service (NRS) as both an Access Point Provider (APP) and System Integrator (SI).

According to him, businesses who fail to transmit invoices through the NRS Merchant Buyer Solution platform would face dire consequences as a result.

Citing the Nigeria Tax Bill, Section 156, and the Nigeria Tax Administration Bill, Section 23, Akinsola declared matter-of-factly that these are the legal frameworks aimed at driving the nationwide adoption of this policy.

Expatiating, the onetime media manager with over a decade experience in the media ecosystem, further justified the adoption of the e-invoicing, noting that there are fifteen key benefits for businesses beyond mere compliance.

While offering a plausible explanation to the different categories of the taxpayer levels, Akinsola highlighted the larger, medium to small businesses.

He said, large taxpayers are companies with annual turnover of N5 billion or more. Medium taxpayers are doing between N1 billion and N5 billion. Emerging taxpayers are those doing N1 billion or less.

“Phase one was rolled out to the large taxpayers. The compliance enforcement window for large taxpayers runs from April to June 2026. By June 30th, if you are not compliant, you will be liable for fines starting July 1st. Phase two, for medium taxpayers doing N1 billion to N5 billion, starts in July 2026. Their compliance enforcement period will be January to March 2027. By March 2027, it is expected that any business in Nigeria doing N1 billion or more will be fully compliant. Phase three covers emerging taxpayers such as the small and medium scale enterprises (SMEs), with their compliance enforcement period spanning January to March 2028.”

“In terms of penalties, every single VAT that applies to an invoice that you have not transmitted outside of the compliance period automatically becomes a fine. And interest is charged on the total amount at 2% above the CBN MPR. The NRS may not act immediately, but whenever they review your compliance record, they will look at whether you were compliant by the relevant deadline. If you were not, all transactions from that point forward are subject to penalties.”

Akinsola explained that e-invoicing remains a critical tool for reducing tax leakages, improving compliance and strengthening revenue administration.

He said the initiative would enhance transparency, improve revenue collection and help narrow Nigeria’s tax gap, while aligning the country with global best practices adopted in countries including Kenya, Zambia, South Africa, Ghana, India and several European nations.

He also called on government agencies to intensify stakeholder engagement, provide technical support and strengthen digital infrastructure to ensure seamless implementation.

Akinsola urged businesses to prepare ahead of enforcement deadlines, while advising companies to assess their invoicing systems, engage accredited service providers and train relevant personnel.

According to him, e-invoicing simplifies VAT administration, improves record-keeping, reduces audit burdens and supports faster tax refund processing.

“Businesses should not wait until enforcement deadlines approach before taking action because integration and compliance require planning and system adjustments,” he said.